A company that trains English-as-a-Second-Language teachers won a $1 million city contract this past summer after its director advised the Department of Education on coaching such instructors, it was revealed at a City Council hearing yesterday.

The contract raises questions about a possible conflict of interest.

Aida Walqui, director of WestEd, a San Francisco-based nonprofit company, was named in January to an eight-member board that recommended training techniques for ESL teachers.

WestEd already held a no-bid contract with the city from last year, but the department renewed the deal this summer after competitive bidding.

The renewal has raised eyebrows, since Walqui helped formulate the guidelines that led to the second contract.

“I’m not willing to say there is something nefarious going on without knowing more, but it concerns me, and I’d like an explanation,” said Councilwoman Eva Moskowitz, head of the council Education Committee.

Walqui did not return phone calls for comment, but a department spokeswoman dismissed any notion of impropriety.

“This is an informal board that is not involved in procurement,” spokeswoman Michele McManus said. “Sitting on an advisory board does not prohibit an individual from submitting a proposal.”

The issue surfaced yesterday at a council hearing that found fewer immigrant students are eligible to take classes with students fluent in English because of tougher state proficiency standards introduced last year.

Just 7.5 percent of the roughly 135,000 city students in bilingual-education programs passed state standardized English tests this year.

That figure is double the rate in 2003, when more rigorous exams that test listening, speaking, reading and writing skills were introduced, but it’s far below previous years.

In 2002, 21 percent of bilingual students performed well enough to be considered proficient in English.

“The academic performance of our non-native speakers of English is in an abysmal state of affairs,” said Moskowitz, who questioned the department’s commitment to reforming the English curriculum.

Deputy Schools Chancellor Carmen Farina agreed the “scores are not where they should be,” but said steps have been taken to address the matter.

Specifically, the department hired 20 regional instructional supervisors to oversee English programs and 107 supervisors to implement the curriculum at individual schools.

To improve English education for foreign students, the department set aside an additional $20 million this year and established guidelines that hold principals accountable for students’ progress.